Illustrate what is the change in quantity of money

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Q. If the Bank of Canada sells 100 million worth of bonds to the public in an open market operation, Illustrate what is the change in quantity of money that will eventually result? Assume that the currency drain in 0.15 and the desired reserve ratio is 0.05, and show your calculations.

Q. Suppose the price level is 50. calculate the seniorage revenues (if any) for each fed action below. if no seniorage revenues result, does the policy give the fed any other revenues or costs? the fed buys $800 worth of tbills.

Reference no: EM1350257

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